CALGARY, Sept. 11 /CNW/ - Alberta Securities Commission (ASC) staff has
amended its December 1, 2005 Notice of Hearing to include allegations of fraud
on investors by the Institute for Financial Learning Group of Companies Inc.
(IFFL), Milowe Brost, Merendon Mining Corporation Ltd., Gary Sorenson, Arbour
Energy Inc., Dennis Morice, Heinz Weis, and Arthur Wigmore.
In the Notice of Hearing, ASC Staff allege that the IFFL, Brost, Merendon
Mining and Sorenson, alone or in concert with others, raised approximately
$46 million through the sale of securities of Arbour Energy Inc. without
proper disclosure to investors and with the ultimate intention of moving the
bulk of the funds to Merendon Mining, a company owned or controlled by
In an earlier July 10, 2007 decision, an ASC panel found that Brost and
others had engaged in a fraud on investors by using investments in a shell
company, Strategic Metals Corp., to fund Merendon Mining's purported mining
ventures. In that decision, Brost received a $650,000 administrative penalty
as well as a lifetime market ban. That decision is currently under appeal.
Merendon Mining and Sorenson were also previously sanctioned by the ASC in
2000 for improper use of exemptions.
The ASC encourages anyone with further information regarding the actions
of the parties above to contact the ASC immediately by calling the Public
Inquiries office at 403-297-4296 or 1-877-355-4488.
A copy of the Notice of Hearing outlining the allegations in their
entirety is available on the ASC website at www.albertasecurities.com.
The ASC is the regulatory agency responsible for administering the
province's securities laws. It is entrusted to foster a fair and efficient
capital market in Alberta and to protect investors. As a member of the
Canadian Securities Administrators, the ASC works to improve, coordinate and
harmonize the regulation of Canada's capital markets.
For further information:
For further information: For Media Inquiries: Tamera Van Brunt,
Director, Communications and Investor Education, (403) 297-2664; For Investor
Inquiries: ASC Public Inquiries, (403) 297-4296, Toll Free 1-877-355-4488